In early 2025, a finding of professional misconduct was made in the matter of Legal Profession Conduct Commissioner (LPCC) v Field. The case highlights the critical importance of trust accounting compliance and the severe consequences of systemic failures.
Key Compliance Failures Identified
The findings detailed contraventions, including:
- Failing to submit the Statement Regarding the Receipt or Holding of Trust Money.
- Failing to have trust records ready for external examination within the required timeframe.
- Failing to have the trust records externally examined.
- Failing to make a required CTA deposit.
- Failing to complete monthly trust account reconciliations within 15 business days of month-end.
- Failing to disburse dormant balances.
- Failing to issue trust receipts promptly upon receiving trust money.
- Failing to maintain required evidence of EFT payments (EFT Online Banking Receipts).
- Failing to record trust payments within five business days.
These breaches represent some of the most fundamental compliance requirements, demonstrating daily, monthly, and annual process failures that ultimately led to regulatory intervention.
The Escalating Risk of Non-Compliance
While the LPCC decision was not published, the systemic nature of these failures suggests significant regulatory scrutiny leading up to the referral to the LPCC.
Compliant trust records are essential for legal practitioners, not only to properly account to clients but also to ensure accurate legal decision-making. Without up-to-date records, trust ledgers cannot be relied upon, exposing practitioners and client funds to unacceptable risk.
This risk escalates when trust reconciliation statements are not prepared within the required timeframe or are prepared incorrectly, leading to uncertainty about whether trust records align with bank statements.
Where there is uncertainty, there is risk
Failing to meet daily obligations inevitably leads to monthly failures, which then compound into annual compliance breaches. By the time these issues surface, the damage is often irreversible, but entirely avoidable.
The Solution: Engage a Trusted Professional
By engaging a trusted compliance expert, this practitioner could have avoided multiple disciplinary action, financial penalties, reprimand and reputational damage.
Nimblebiz Solutions specialises in trust accounting compliance and regulatory risk management, ensuring legal professionals remain fully compliant and protected.
Expert oversight provides structured compliance protocols, accurate reconciliations, and proactive risk mitigation, preventing costly errors before they escalate.
Don’t wait for a compliance crisis, engage a trusted professional today to safeguard your firm’s integrity.
Stay ahead of compliance, contact Nimblebiz Solutions today